Everyone wants to get the best bang for their buck. They set their goals high and reach for the stars. After all, why sell your Rockledge real estate for less than it is worth right? However, many homeowners today are overlooking countless factors as to why pricing a home too high may just lead to disaster.
One crucial factor homeowners are not aware of is the stunt used by many realtors when trying to obtain your listing. Realtors know the market, or at least they should. They know what your house can sell for and they know who to market the property to.
Want to Start off with a High Sales Price? The Dangers of Doing So
However, many realtors, when first speaking with you, will tell you a number for your house that is higher than what the house is actually worth. For example, if your house is worth $100,000; the realtor may tell you it can easily sell at $150,000. Why would they do this? Realtors want business. Thus, they will bump up their suggested listing price to gain your attention as well as skew your expectations of other competitive realtors.
Once the realtor has your listing, he or she often will try and sell the house to other agents or to another potential homeowner. The problem is, if your house is priced too high, fewer agents and homeowners will want to even view your property. With fewer viewers, you get fewer buyers. You can see where this line of thought goes, right?
After a few months with your home being on the market with little or no action, the realtor may then lower the price of the home. What is the problem with this? By then, your house is “old news.” There are countless homes that are listed at the proper price and thus many will not see a point in looking at your home a second time.
It is also more difficult to gain attention with the lower price, because your house has already been in the advertisements, listed on the realtor web sites, and discussed via word of mouth. It becomes quite difficult to get your home noticed a second time.
Buyer’s Are Paying Attention To Your Listings Activity
Another potential danger in listing your house too high is how you look to the potential buyer when you eventually lower your price. Many potential buyers may see your decision to be one made in desperation. If this proves to be correct, the buyer can then ask a lower price of you. It is not difficult to see what the possible outcome of this particular situation may be. Although you began the process of selling your home with a high asking price, you may actually end up selling it for a lower one.
The buyer knows you want to sell your house and he or she also knows that your house has been on the market for several months or years. Thus, they also know that you are probably willing to settle for a lower price if it means you will sell your house. With this pattern, you will actually get the opposite outcome you had intended to receive by pricing your home higher than what it is worth.
In order to avoid the drama and heartache of pricing your home too high initially, it is important to receive a proper assessment of your home. This assessment will not only suggest ways to improve your home in order for you to receive the greatest amount of attention, but it will also provide you with a fair asking price for the property. Although this may add a little extra to the dollars spent on the place, it is worth it to avoid the battlegrounds of the future!
For more ideas about selling a home to get the most money in the shortest amount of time, you can check out Mitch Ribak’s Palm Bay real estate website where he also gives access to view all Cocoa real estate for sale in the MLS.